ProPetro Holding Corp (PUMP)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		49.51	74.14	200.82	201.48	270.27
DOH	days	7.37	4.92	1.82	1.81	1.35

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 49.51
= 7.37

The days of inventory on hand (DOH) for ProPetro Holding Corp has shown a steady increase over the years. From 1.35 days at the end of 2020, it slightly grew to 1.81 days by the end of 2021, and then continued to rise to 1.82 days by the end of 2022. However, there was a significant jump in DOH to 4.92 days by the end of 2023 and a further increase to 7.37 days by the end of 2024.

This escalating trend in DOH indicates that ProPetro Holding Corp is taking longer to sell off its inventory, which could imply potential inefficiencies in inventory management or a slowdown in sales relative to production. A higher DOH may tie up capital in inventory and increase carrying costs, impacting profitability and liquidity. It would be important for the company to closely monitor and address the factors contributing to the extended DOH to optimize operations and improve financial performance.